Alamo PMI 2 nd Annual Right Arm Day Walter A. Viali, PMP Region 6 Mentor PMI Strategic Planning –...

Alamo PMI 2nd Annual Right Arm Day

Walter A. Viali, PMPRegion 6 Mentor

PMI

Strategic Planning – Shaping the Project Slate

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My Background… Worked with Texaco in Rome and in

Houston for 25 years (1974-1999) PMO “aficionado” since 1983 Consulting since 1999 with several

companies on PMO implementation PMI member since 1998 Became a PMP during the last

century PMI Houston President in 2007 PMI Region 6 Mentor since 1/1/2011 And, of course………………….

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Elvis Who?

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My Roman Elvis Ancestor…

Roman Elvis, circa 200 A.D.

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When Elvis died in 1977, there were three known impersonators…In 2004 there were over 50,000….With this growth rate, in 2022, one of four people on the planet will be an Elvis Tribute Artist (ETA)... So, get ready!

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… as I’ve been working at it for a while!


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Eric JenettPMP no. 1

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What We’re Going to Talk About

What Is Strategy? From Vision to Projects The PMO and Strategy?

◦ Time for the PMO to Step Up The Driver for Strategic Planning

◦ Time for Senior Management Buy-in The Processes for Strategic Planning

◦ What really works Balanced Portfolios of Projects What About Project Management? Top Project Management Trends for This Year

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In Plain English….. Strategic Planning gives us direction and tells

us which projects will best support the business and therefore increase its probability of success

Alignment ensures that, as the business changes, so will the projects we are working on

Project Management tells us how to effectively manage these projects and what information to generate and communicate, to ensure that the overall process is working as smoothly as possible

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Why Plan? “Planning is an unnatural process. It’s

much more fun to do something. And, the nice thing about not planning, is that failure will come as a complete surprise, rather than being preceded by a period of worry and depression”…

We love to react and hate to plan, but lack of planning will result in delays, rework, cost increases and even greater problems...

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What is Strategy?

Strategy is foresight: the deep intellectual challenge of trying to see and understand when the future is still “formless”, communicating that foresight and mobilizing the organization to act

Strategy is a process in motion, unending and never complete, constantly adapting to in accord with events

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What is Strategy? Strategy is holistic understanding of all the

functions of the business – including all, neglecting none

Strategy is alignment: creating a shared competitive agenda and preempting misalignment

Strategy is an art, assembling a plan from a puzzle of missing and irregular pieces

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Provant Project Management

Project Driven Organization

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A High-Level View from PMI

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From Vision to Projects

Vision

Projects

Programs

Portfolio

Strategy

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In Plain English….. Portfolios are collections of Programs and

Projects that support specific business strategies in an organization

Programs are groups of related projects (i.e. Apollo Space Program)

Projects are unique endeavors, with a definite start and end, which produce a desired product on time and on budget

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Support for Organizational PM

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PgMP


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PMP, CAPM, RMP, SP


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OPM3 AOPM3 C


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Strategic Planning ???


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Completing the Big Picture

We’re working on getting a handle on managing portfolios, programs, and projects through PMI and its standards

What about vision and strategy? How do we do that?

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What Do We Want to Accomplish with Strategic Planning?

Establish common vision Agree on company mission Define long-term objectives Develop business strategies Define associated goals

◦ Key Performance Indicators (KPIs) Understand which programs and projects

are needed to support each long-term objective and business strategy

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Where Do Projects Fit in Strategic Planning?

Each project must clearly support a business strategy because◦ It consumes valuable resources◦ It costs money◦ It impacts a lot of people

If a project no longer supports a business strategy, ◦ It must be terminated and◦ We need methodologies and controls in place to know

how and when to do this

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The Bottom Line... What we need is the initial alignment of

business and projects with continuous monitoring and reporting to ensure all projects adequately support the organization’s business strategies on an ongoing basis.

This is not going to happen by itself!◦ Organizational Function (and a Driver)◦ Strategic Planning Processes◦ Overall commitment (not a once off deal!)*

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Organizational Function - The Project Management Office

An “office” staffed by project management professionals who serve their organization’s project management needs◦ Full service provider of project management

services◦ Center of project management excellence

What does this have to do with Strategic Planning?

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Organizational Function - The Project Management Office

If business long-term objectives, strategies and goals are to be met through projects, then we need to:◦ get a good handle on projects and related

processes for managing them◦ ensure continuous alignment of these projects

with the business long-term objectives, strategies and goals through persistent performance monitoring and reporting

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Project Control - Model 1◦ Plan, cost, project management schedule, resources at a project

level (ERP implementation)◦ Develops and supports project management process

Organizational Project Control - Model 2◦ Develops and supports extensive software development and

organizational processes◦ Coordinates project management, schedule and cost across the

organization Enterprise Project Management - Model 3

◦ Supports strategic planning and related alignment of projects

◦ “Owns” the organization’s project managers, trains them and assigns them to projects

◦ Develops and supports the development and organizational processes

Project Office Models

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Drill Down Capability

ExecutiveManagement Project Portfolio

Database

ProcessLibrary

ResourcePool

ContractorDatabase

Business Units

PMO Tools

Training

PMO OperationsGuide

PROJECTMANAGEMENT

OFFICE

• Program Status• Program Forecasting• Schedule Performance• Project Funding• Resource Analysis and Allocation• Projects Disposition• Issues/Resolutions• Overtime Reporting• Cost Overrun• Business Function/ Program Evaluation• Contract Analysis• Program Exception Analysis• Budget Analysis• Problem Analysis

StandardReporting

Requirements

PolicyVisionStrategyBus. TrendsDirection

Projects

Status

Approvals/Adjustments/StatusBudget ProposalsBusiness CasesProject Justification

Model 3 Project Office

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Financial

• Budget planning

• Cost benefit analysis of projects

• Monitoring project investment

• Leveraging current technology

• Maximizing technology effectiveness

• Risk mitigation

• Ensuring quality project outcomes

• Mentoring• Issue

resolution• Scope control• Deliverables• Change control• Resource

fulfillment• Project Status

Reporting

• Resource organization/management

• Employee satisfaction/ retention

• Project Authorization

Business Strategy

Quality Assurance

Project ManagementOperations

• Mapping to business goals

• Meeting customer demands

Technology

The Project Office facilitates project success by focusing on all key aspects of a project:

PMO Focus Areas

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The SPO and the PMO

The Strategic Planning Office

The Project Management

Office

Vision and Strategy

Portfolios, Programs

and Projects

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“Ultimately, project governance is the responsibility of the board of directors and executive management. It is an integral part of enterprise governance and consists of the leadership and organizational structures and processes that ensure that the organization’s projects sustain and extend the organization’s strategies and objectives.”

ITGI document: Board Briefing on Governance

Project Governance Defined

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OperatingDepartments

CEO COO

SeniorUser

SeniorBusiness

SeniorTechnical

Enterprise Governance

ProjectGovernance*

Project Manager

Project Team

PMO

* = Level of ProjectGovernance staffing tiedto project visibility anddelegation of authority

QA

Enterprise and Project Governance

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The Processes and Techniques for Strategic Planning

… and commitment

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BUSINESS STRATEGY A

BUSINESS STRATEGY B

BUSINESS STRATEGY C

PORTFOLIO B

PROGRAM X PROGRAM Y

PROJECT 1

PROJECT 2

PROJECT 3 PROJECT 6

PROJECT 5

PROJECT 4

TOTAL COST TOTAL BENEFITS

COST BENEFITS

$

$ $

$

$

$ $

$ $

$

$

$

COST BENEFITS

Establishing Project Portfolios

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Establishing a Strat Planning Cycle

Prepare/ ReviewStrategic Business Plan

Prepare/ ReviewProject/ ProgramsPortfolio

DevelopTactical Planfrom the Project Portfolio

Submit Tactical Plan to the PMO/Budgeting Process

Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec.

Performance (Monitor/Evaluate/Report)

Determine Required Changes to the PlanningProcess

Execute the Business Plan and the I.T. Plan

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Using a Standard Methodology for Strategic Planning

Project Initiation

Business Strategy Definition

Portfolio Development/Alignment

◦ Identify Programs / Projects

Project Closure

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Business Strategy Definition (Standard Methodology)

Major Steps:◦ Industry Analysis◦ Organization Analysis◦ Business Unit Analysis◦ Organization Infrastructure Analysis◦ Business Strategy Definition and Review◦ Definition of Portfolios of Programs and Projects

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Business Strategy Definition (Standard Methodology)

Major Deliverables:◦ Industry Components, Trends and SWOTs ◦ Organization and BU Culture, Trends,

Mission, Vision, Objectives, Critical Success Factors and SWOTs

◦ BU Significance and Financial Analysis◦ Activity and Information Needs Analysis◦ Business Strategy

Vision, Mission, Long-Term Objectives, Strategies, Goals, Critical Success Factors

◦ Portfolios of Programs and Projects

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Strategic Plan Format (Standard Methodology)

Executive Overview Current situation analysis for the

organization and its stakeholders Definition of business strategies and

supporting projects Prioritized projects and description Financial and tactical plans

Elapsed time to develop?

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A Few Issues Issue # 1 – How long does it take to develop

the strategic plan?

Issue # 2 – How much will it cost to develop the strategic plan, if led by an external consulting group?

Issue # 3 – How long will this strategic plan remain current?

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How About Some Speed?

As the world continues to accelerate… As the current business climate demands

quick action… As new strategies are required almost on a

daily basis…

…Can we do things faster? Can we develop a strategic plan in 2-3 days?

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JAD for Strategic Planning JAD (Joint Application Development) is

a structured meeting, conducted by a neutral facilitator, designed to extract high-quality information from the meeting participants, using a compressed timeframe and a workshop environment to enhance the process.

JAD strongly complements, but does not replace, analytical methodologies.

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Structured Agendas-The Standard JAD Agenda

Introduction Review Purpose, Scope, Objectives Ground Rules Executive Sponsor Kickoff I.T. Perspective [ Session Approach ] Review Issues Review Design Evaluate Workshop

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Structured Agendas - A few JAD Session Approaches

Strategic Business Planning Approach Business Reengineering Approach I.T. Planning Approach Project Scope Definition Project Requirements Definition Project Management

◦ Delphi Estimating Sessions◦ Detailed Project Planning Sessions

And many more…

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Structured Agendas

Define Vision and Mission of activity Define Guiding Principles Analyze current situation Analyze competitive situation Define Objectives and Goals Develop Business Strategies Define Critical Success Factors Design Programs, Projects and

Resources Describe support Organization Define follow-on activities

Strategic Business Planning

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Many Techniques Available

Vision/Mission Definition Barriers to Entry Opposing Forces Stakeholder Analysis Strengths, Weaknesses, Opportunities

and Threats (SWOT) Balanced Scorecard F.I.S.T. Value Chain Analysis

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Vision Statement

Set of operationally meaningful statements

Focuses on what the organization wishes to become

Takes into consideration matters of strategic importance:◦ Mission◦ Driving Force◦ Stakeholders

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Vision Statement What is the thrust or focus for future business

development? What is the scope of products, services and markets

that will --- and will not --- be considered? What is the future emphasis or priority and mix for

products, services and markets that fall within that scope?

What key capabilities are required to make the vision happen?

What does this vision imply for growth and return expectations?

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Mission Statement

Definition:- What needs is the organization trying to fill?- Who are the primary stakeholders?- How do we do our business?- What are our philosophies and core values?- What makes us distinctive and unique?

Purpose:- To provide focus and direction to the business- To specify the purposes of the organization and the

primary rules that guide it

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VISION

To be recognized as a valued partner in driving Texaco’s growth and profitability through excellence in information services.

MISSION

Our Mission is To Provide Texaco and its Affiliates with:

Information Architecture StandardsWorld class network and computing environment

Value added information solutionsEffective transfer and sharing of Information Technologies across entities

Strategic workforce planning for information professionals

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Equilon and Motiva Sales and MarketingOur Vision

To be the leader in fuel and convenience marketing

Equiva Services Sales and MarketingOur Mission

Assist the Alliance in becoming the convenience marketer of choice

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Structured AgendasStrategic Business Planning

Define Vision and Mission of activityDefine Guiding PrinciplesAnalyze current situation Analyze competitive situationDefine Strategic Objectives and GoalsDevelop Business StrategiesDefine Critical Success FactorsDesign Programs and ResourcesDescribe support OrganizationDefine follow-on activities

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Guiding Principles

Guiding Principles are statements of belief which define the philosophies of the organization and how the group will work in order to support the mission statement of the organization.

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Examples of Guiding Principles We will support each other in striving towards our

goals. We believe that people and their knowledge are our

most valuable assets. The desire for continuous quality improvement will

drive our every action. We will lead by example. We will provide guidance to our customers in

understanding and implementing continuous quality improvement.

We will continuously improve the products and services we provide.

We will focus on our vision, but not lose sight of the details required to accomplish it.

We believe that team management is the best vehicle for implementing continuous quality improvement.

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Analyze Current and Competitive Situation

Current Situation Analysis

Competitive Situation Analysis

Value Chain Analysis

Five Forces Analysis

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Analyze Current and Competitive Situation

SWOT Analysis◦ Strengths of the organization (internal)◦ Weaknesses of the organization (internal)◦ Opportunities for the organization (external)◦ Threats to the organization (external)

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Strengths Weaknesses

Opportunities Threats

Leverage assets to provide new revenue streams with improved income resiliency

Market share provides scale for alliances with others

Strategic wholesale joint ventures

Supermarket expansion will continue with attendant cost structure advantages

Fuel is becoming commoditized in the minds of most consumers

Recent industry mergers pose new efficiency/effectiveness challenges

Business performance subject to the instant volatility of the spot market

High dependence on fuel margin Channel flexibility is limited and

movement is slow Age and size of sites not easily adaptable

to fuel margin decline

• Fully developed network plan• Broad based risk portfolio of businesses (i.e., unbranded

fuel sales to fast food)• Strong, national brands which currently command a

“majors” price premium• Network provides competitive cost and customer access

advantages

Sales and Marketing SWOT Analysis

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Value Chain Analysis Think about an organization as a big input/output process At one end, supplies (input) is brought into the system At the other end, goods and services are sold (output)

InboundLogistics

Operations OutboundLogistics

Sales &Marketing

Service

• Throughout this process are opportunities for people to add value to the organization• By bringing in supplies more efficiently• By selling more products, etc.

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Value Chain - Manufacturing

SupportActivities

Primary Activities

MarginAdministration and Firm Infrastructure

Human Resource Management

Technology Development

Procurement

In-BoundLogistics

Operations Out-BoundLogistics

Marketing And Sales

Services

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Value Chain - Services

SupportActivities

Primary Activities

Margin

Administration and Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Service Preparation Service Delivery Service Follow-Up

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Strategic Objectives Strategic Objectives are statements of

positions to be reached or purposes to be achieved. They answer the question “where do we want to go?”

They should be consistent with the intent and purpose of the mission and vision statements.

Strategic Objectives should be challenging, yet achievable, guides that set criteria for selection of alternatives among possible courses of action. They should not specify a specific course of action, like a goal.

Objectives can be distinguished from goals by the following example:

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Strategic Objectives

One of John F. Kennedy’s strategic objectives in 1960 was to reestablish the USA’s position as a leader in the fields of science and technology; one of his goals was to land a man on the moon and return him safely by 1970.

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Strategic Objectives Examples Have dominant market share for all refined oil

products Be recognized as the premier provider of

Project Management training and consulting services.

To constantly be in the process of developing and integrating appropriate new quality improvement methodologies.

Have in place an organizational culture where people find quality improvement and customer focus fulfilling and rewarding.

Grow international presence in lubricants market

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Goals Goals are specific accomplishments for the

organization to achieve in moving from the current situation towards the identified strategy.

Goals define where the organization wants to go and when it wants to be there.

Goals define the gaps that the organization’s activities must bridge if they are to meet their strategies and thereby their objectives.

Each goal should have a specific date and deliverables associated with it.

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Goals Examples

1. By June 1, 2010 have completely revamped training materials and classes.

2. By the end of April, 2009, have completed support documentation (slides, handouts, agendas, etc.) for SBP and ISP sessions.

3. By September 1, 2009, document alternative resources needed to meet the needs of customers.4. By December 31, 2009 have negotiated SLAs with 50% of our current customer base.

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Strategies Strategies answer the question, “How do we get where we

want to go?”.

Strategies further refine objectives by identifying specific means of supporting the strategic objective; however, they do not identify specific tasks or establish time-frames for completion. Rather, strategies define how the organization is going to accomplish the objective.

Strategies focus on the opportunities and threats in the corporation’s relationship to the environment and on the strengths and weaknesses in the internal operations of the company.

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Strategies ExamplesSome strategy areas that an organization can pursue include:

Product and Markets:- Improve existing products and services- Develop new products in existing product lines- Develop new product lines- Withdraw low-revenue products- Expand market share- Seek new or associated markets

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Strategies ExamplesManufacturing:

- Transfer programs from development to manufacturing- Expand existing facilities- Buy new equipment- Develop new manufacturing technologies- Decrease manufacturing costs

Marketing and Sales:- Undertake new or revised market studies- Change sales and advertising budgets- Change pricing structure- Modify distribution system- Add or drop geographical areas of sales

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Critical Success Factors (CSFs)

Critical success factors are all those factors needed to realistically achieve strategies and strategic objectives.

The absence of the necessary CSFs could easily delay, hamper or totally prevent a goal from being achieved in the stated time frame

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CSF Examples Sufficient budget available Having the right expertise Completion of another project Reduced product costs Consensus on a standard Service Level

Agreement. Weather The economy

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Strategic Objective/Strategy/Goal/CSF Examples

StrategicObjective

To be recognized as the premier provider of Project Management training and consulting services.

Strategy

Improve existing products/services.

Goal By June 1, 2010 have completely revamped training materials and classes.

CSF Sufficient budget available for advertising.

CSF Must hire people experienced at developing class material.

Strategy

Implement Service Level Agreements with new and existing customers.

Goal By December 31, 2009 have negotiated SLAs with 50% of our current customer base.

CSF Reduce product costs.

CSF Consensus on a standard Service Level Agreement.

CSF Sufficient budget available for development and negotiation.

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Project Portfolio Prioritization Matrix

As Of Date: _ 10/15/2010________ Strategic Priority: ______2________

Business Project Manager: ___Bill Jones__________________________

I.T. Project Manager: ___Carl Roecker_____________________________

Project Name/Business Strategy: _Expand use of Web solutions______

Profitability Market Share Infrastructure Reduce Costs MandatedInitiative creates profitability to organization

Initiative increase product or service market share

Initiative improves organization infrastructure

Initiative enables organization to compete

Initiative is required

Does not improve service

Less than $1M in first year

Greater than $2M in first year

Less than $5M in first year

New industry product

Industry leader

0

1

2

3

4

5

10 x .4 = 40 12 x .3 = 36 5 x .15 = 75 4__ x .1 = 4 _0 x .05 = 0

Does not improve Market Share

Strong potential to increase Market Share somewhat over next 2 years

Strong potential to increase Market Share somewhat over first year

New industry product

Significant impact right away

0

1

2

3

4

Market Owner 5

Does not improve Infrastructure

Reduces cost somewhat of existing infrastructure

Reduces cost moderately of existing infrastructure

Reduces cost significantly of existing infrastructure

Provides competitive advantage

Industry Leader

0

1

2

3

4

5

Does not improve competition ability

Improves somewhat ability to compete

Improves moderately ability to compete

Improves significantly ability to compete

Moderately reduces cost to compete

Significantly reduces cost to compete

0

1

2

3

4

5

Initiative is not mandatedState mandated

within fiscal year

Federally mandated within Fiscal Year

High risk of State penalty if not implemented in fiscal year

High risk of Federal penalty if not implemented in fiscal year

Large Penalty to theBusiness if not implemented in fiscalyear.

0

1

2

3

4

5

Alamo PMI 2nd Annual Right Arm Day79

A Final Word on Real Benefits On a major tax project, JAD sessions

generated six months worth of project documentation in 14.5 days

Major refinery identified and prioritized 24 new information systems in 2 days

JAD brought together participants from several locations to develop specifications for a project that had been on the drawing board for 10+ years

Major computer manufacturer collected critical requirements for a vital company function in 6 days

Alignment of business strategies and I.T. strategies identified need for a major reporting project tied to a new business initiative about to be launched

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Alamo PMI 2nd Annual Right Arm Day80

A Final Word on JAD

JAD is the most effective technique we have found in over 35 years when it comes to strategic planning, project scope definition, project planning, and collecting lessons learned.

Not using JAD takes away from an organization’s ability to be the best it can be in truly creating and managing its knowledge assets.

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Strategic Planning & Alignment

Align portfolios with the business activities As the business changes, update the business

plans and, consequently, re-align project portfolios Ensure projects are viewed from their financial

perspective and contribution to the success of the business strategies (and are not “pet“ projects)

Have the right methods and tools in place to monitor performance of projects, alignment with strategies, overall costs and benefits

If projects are no longer viable, trash them!

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Business/IT Steering Committee Status Report for: date

Sales & Marketing - All Project Portfolios

Portfolio Business Strategy Total Cost Expected Benefits Overall Portfolio Status CommentsA. Optimize the Sales Network $9999M $99,999MB. Reduce Cost through the Sun Study $9999M $99,999M Decisions pendingC. Implement a Distributed Support Model $9999M $99,999MD. Rationalize Acquired BUs $9999M $99,999ME. Expand the Use of Web Based Solutions $9999M $99,999M Behind scheduleF. Implement the Regionalization of Western Operations $9999M $99,999MG. Reduce the Number of Wolrdwide Plants $9999M $99,999M

Totals $99999M $999,999M

Overall Risk Summary: 1. Current strategies are to be reviewed at the next Steering Council Meeting.2. Stability of current portfolios impacted by new, emerging business strategies.

Additional Comments: 1. Portfolio F. impacted by loss of FTEs in the Western Region.

Project Portfolio Summary

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Business/IT Steering Committee Status Report for: date

Sales & Marketing Function: eMarketing Project Portfolio Account Codes: 99999

Business Strategy Supported by this Project Portfolio: Expand the use of web solutions.

Total cost of Project Portfolio: $ 195,200 Total planned benefits for this Project Portfolio: $ .5M

New Projects

Project Name Budgeted Amount Expenses to Date Status Issues this period Outlook next periodLink to Merchandise Website 5,000 405 Redesign Sales Consultant Pages 44,000 1,140 Behind schedule 1 FTE to be added

SUB-TOTAL 49,000 1,545

Run and Maintain

Project Name Budgeted Amount Expenses to Date Status Issues this period Outlook next periodEnhance Broadcast Messaging 45,100 7,643 Modify/Test Release 1.7 101,100 36,743 95% Contingency used up.

SUB-TOTAL 146,200 44,385

PORTFOLIO TOTALS 195,200 195,200

Risk Analysis Summary: 1. Business liaisons for Redesign Sls Consultant Pages have not been available to the project team.

Change Requests Volume/Summary: 1. No significant change requests have been submitted during this reporting period.

Additional Comments: 1. A strategy review session will be held with the eMarketing group to confirm current direction.

Pending Projects

Project Name Project Summary Cost Benefits FTEs PriorityDevelop New Site for the Western Region Current site no longer maintainable $9,999 $99,999 3.5 1

Total $9,999 $99,999

Project Portfolio Reporting

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BUSINESS STRATEGY A

BUSINESS STRATEGY B

BUSINESS STRATEGY C

PORTFOLIO B

PROGRAM X PROGRAM Y

PROJECT 1

PROJECT 2

PROJECT 3 PROJECT 6

PROJECT 5

PROJECT 4

TOTAL COST TOTAL BENEFITS

COST BENEFITS

$

$ $

$

$

$ $

$ $

$

$

$

COST BENEFITS

Establishing Project Portfolios

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So, What’s the Big Deal? We absolutely have to tie all projects in our

portfolios to business strategies! Strategies change all the time! We need a true and tried rapid process to

develop and update our strategic plan and align and realign projects and strategies!

We need a PMO to make all this happen or it simply will not!

How many companies are really doing this???

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Need a Robust Approach for Project Management,

too

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OperatingDepartments

CEO COO

SeniorUser

SeniorBusiness

SeniorTechnical

Enterprise Governance

ProjectGovernance*

Project Manager

Project TeamPMO

* = Level of ProjectGovernance staffing tiedto project visibility anddelegation of authority

QA

Enterprise and Project Governance

Business Controls

Quality Controls

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Technical Tasks

IPECC

Technical Tasks

IPECC

Technical Tasks

IPECC

Technical Tasks

IPECC

Post-ProjectReview

PM ProcessApplication Area Process(Seismic, Drilling, Plant Dev., etc.)

Business Controls(Management)

Quality Controls(Technical)

- Product Quality- Technical Standards

- Resources- Schedule- Cost

T e c h n i q u e s

T o o l s

Stage 1, 2, 3, 4…(for example: Initiation, Development,Implementation, Closure)

= Compulsory End-Stage Assessment Meeting

= Quality Review Meetings (Scheduled as needed by Project Type, Activity Type, Deliverable Type

= Compulsory Quality Review Meeting

Business and Quality Controls

Process/Project Management

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Continuous Loop of Direction, Validation and Adjustments

Enterprise Strategy

Business Unit Delivery Strategy

Project Management

Office

Dir

ecti

on

Prioritization

Feedback

Feed

back

Project Status Reports, Time Sheets, Project Schedules

Governance Review Board

Governance Review Board

QA/QCProgram/ Project Managers

Feedback

Courtesy of Steve Rollins, PMOUSA

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We Have a Plan – Now What?

“Strategy has never been more important,” – Business Week.

“Less than 10% of strategies are effectively executed,” – Fortune

“If you’re not managing to a strategy, than what are you doing?”

“In the majority of failures – we estimate 70% – the real problem isn’t bad strategy, it’s bad execution.” – “Why CEO’s Fail,” Fortune

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Implementing the Strategic Business Plan

“You may have sweated bullets to come up with a great strategic plan, but the really hard part is yet to come: actually implementing your plan for strategic change. For a plan to succeed, you’ve got to successfully orchestrate and direct a diverse range of people, resources, programs and actions over a sustained period of time and across numerous organizational boundaries. It’s difficult, complicated work that allows for no shortcuts and no compromises.”

C. Davis FoggImplementing Your Strategic Plan:

How to Turn “Intent” into Effective Action for Sustainable Change

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Implementing the Strategic Business Plan

In the end, it’s all about people and how they are organized and professionally “nurtured”

◦ Set accountability◦ Fix the organization◦ Enable and align◦ Provide an environment in which people

can excel◦ Judge and reward

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The 18 Keys to Strategy Implementation

1. Setting accountability

Key 1: Develop an accountability systemKey 2: Turn strategic priority issues into assigned, measurable action plansKey 3: Embed departmental planningKey 4: Negotiate individual accountability

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2. Fixing the organization

Key 5: Change the organization structure - fastKey 6: Change the people - fastKey 7: Foster creative leadership and mental toughnessKey 8: Remove resistanceKey 9: Use teams (appropriately)

3. Enabling and Aligning

Key 10: Define the future culture Key 11: Allocate resources effectively, putting your money and people where your future is Key 12: Align your organization’s work with the plan – from top to bottom

4. Providing an environment in which people can excel

Key 13: Empower executionKey 14: Select, train and develop for the future - nowKey 15: Fix broken core processesKey 16: Communicate to everyone all o f the time

5. Judging and rewarding

Key 17: Review performance Key 18: Reward strategic results

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How Well Are We Doing?

Are we implementing the strategic plan effectively (and who is doing this)?

Are we managing our portfolios, programs and projects effectively (and who is checking)?

Are they aligned with our business strategies (and who is looking)?

How do we know if we’re really doing well or not, on an ongoing basis (and who is worrying about it)?

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Bridging the Gap

In a global survey of 750 project management office (PMO) leaders, 68%

reported having no systematic method to prioritize projects or link them to

corporate strategy.

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Organizational PM - Improving Performance

488 Best Practices

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The PMO and PMI’s OPM3 The assessment tool must be effective and

allow for quick results All companies assessed so far have failed to

score higher than 39% (on a 0 to 100 continuum)

Conducting OPM3 assessments periodically does give the PMO an opportunity to show its value to senior management

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1. Specific project management training continues2. Effectiveness of agile development challenged3. Project management expands beyond project

managers4. Larger projects hold challenges5. Project managers pushed to innovate6. Project manager certification upgrades7. Vendor management becomes a priority8. Project management offices further strained9. Funding pressure increases portfolio

management10. Agile development gains popularity to cut project

times

Top PM Trends in 2013

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While project management offices exist to improve project performance, businesses rarely grant those offices the resources needed to do so.

That, combined with increasing pressure to perform, will strain and break many project management offices.

PMOs Further Strained

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Portfolio management is more than a prioritization exercise.

It is the culminating activity in competitive strategy where executives have identified the programs and projects that will turn their intentions into reality.

We are witnessing more companies investing in IT and process improvement to get a better handle on all of the project-based investments occurring across their business.

Project Portfolio Management

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And they are tweaking — and in some cases overhauling — their portfolio management approach to make sure it is the best it can be.

Many organizations will continue to develop a portfolio hierarchy at the division, business unit, regional, and corporate-wide levels.

This will require substantive expertise in portfolio management principles and practices, and a healthy dose of diplomatic and political skills to get everyone headed in the same direction.

Project Portfolio Management

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Business Process

Reengineering

Strategic IT

Planning

Project Portfolio

ManagementProjects

Project Management

Office

Maturity Models

The Desired PMO Lifecycle

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Business Process

Reengineering

Strategic IT

Planning

Project Portfolio

ManagementProjects

Project Management

Office

Maturity Models

The Desired PMO Lifecycle

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A Model 3 PMO is a necessity not a luxury The PMO has to adopt JAD as a most effective

technique (speed/accuracy) for strategic planning and project requirements/scope definition

Constant realignment of business strategies and programs/projects is most desirable and should not be viewed as a disruptive activity

PMO needs to adopt OPM3 to assess the effectiveness of Organizational Project Management and to produce “survival” metrics

Culture Change Management is key!

The Bottom, Bottom Line…

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"Nothing is more difficult than to introduce a

new order. Because the innovator has for

enemies all those who have done well under

the old conditions and lukewarm defenders in

those who may do well under the new”

(Nicolo’ Machiavelli, 1513 A.D.)

Nothing much has changed….

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Who Survives?

Not the strongest

Not the most intelligent

Those most responsive to change

(Charles

Darwin) The ones who can deal with the unexpected

(Walter Viali)

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The Arthur Andersen partner was on his cell phone, when he said,

“Ship the Enron documents to the Feds,”

But his secretary heard,

“Rip the Enron documents to shreds.”

Sprint PCS The clear alternative to cellular

The Arthur Andersen partner was on his cell phone, when he said,

“Ship the Enron documents to the Feds,”

But his secretary heard,

It turns out that it was all just a case of bad cellular.

Everyone Must Be On The Same Page…

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The Trunk Monkey

Four video clips to convey the importance of critical resources on projects.

Make sure the Strategic Business Plans take into account the need for the proper levels of critical resources.

At the project level, have a Plan “B”, agreed to upfront with the sponsor, in case critical resources vanish!

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Thank you, thank you very much..

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Contact Information

Walter A. Viali, PMPPMI Region 6 Mentor

[email protected]

Alamo PMI 2 nd Annual Right Arm Day Walter A. Viali, PMP Region 6 Mentor PMI Strategic Planning –...

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